A TV producer mass-produced all of the TV components based on the demand forecast. However, they will not assemble the final product until the actual order is received from the customer. This supply chain structure enables them to customize the final product based on the customer's requirements and take advantage of the economy of scale. They are using: Group of answer choices Hybrid pull-push supply chain Push-based supply chain Hybrid push-pull supply chain Pull-based supply chain
Question
A TV producer mass-produced all of the TV components based on the demand forecast. However, they will not assemble the final product until the actual order is received from the customer. This supply chain structure enables them to customize the final product based on the customer's requirements and take advantage of the economy of scale. They are using: Group of answer choices
Hybrid pull-push supply chain
Push-based supply chain
Hybrid push-pull supply chain
Pull-based supply chain
Solution
The TV producer is using a Hybrid Push-Pull Supply Chain.
Here's why:
In a push-based supply chain, the producer makes all of the decisions about what to produce, how much to produce, and when to produce it, based on forecasted demand. The producer then "pushes" the product down the supply chain to the consumer.
In a pull-based supply chain, the consumer makes all of the decisions about what to produce, how much to produce, and when to produce it, based on actual demand. The consumer then "pulls" the product through the supply chain from the producer.
In a hybrid push-pull supply chain, the producer makes some decisions based on forecasted demand (push), and some decisions based on actual demand (pull). In this case, the TV producer is mass-producing components based on forecasted demand (push), but not assembling the final product until an actual order is received (pull). This allows them to take advantage of economies of scale, while also being able to customize the final product based on the customer's requirements.
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